COVID-19Job Support SchemeJSS

COVID-19 New Job Support Scheme – 22/10/2020

What is the new scheme? 

Recently the government has announced a variety of new measures which will replace furlough, it is to be enforced as of 1st November 2020 and will continue for six months, until April 2021. This new scheme is designed to protect and support employees job positions in businesses who will be facing a lower demand over the winter season due to COVID-19. Employees will remain to receive pay from employers for their time worked, however, the hours which have not been worked by the employee will be split through the assistance of wage support between the employer and the government. 

This scheme is targeted towards those businesses who require it most and who have, or possibly could be greatly impacted because of the Coronavirus. The government will pay a third of hours not worked to ensure that employees will earn a minimum of 77% of their normal wages. 

 

Who is eligible to partake? 

Employees 

Regarding employees, they must be on an employer’s PAYE payroll on or before 23rd September 2020. Verification is required using Real Time Information (RTI) notifying a payment to that employee to HMRC must have been made on or before the given date. To qualify, employees must work at least a third (33%) of their usual hours. This will continue for three months; the government will then make the decision either to increase the minimum hours threshold or let it remain the same. Employees will not have to work the same pattern each month, however, each short-term working agreement must be a minimum of seven days. 

Employers 

Employers with a UK PAYE scheme and UK bank account can claim the grant. Larger business will have to meet a financial assessment test, so the scheme is available to those whose turnover is lower now than before the difficulties that have arisen due to COVID-19.  

 

Reduced Hours 

Reduced hours for staff mean that they have to work at least a third (33%) of their normal hours. For the time that employees work, they will be paid their normal agreed wage. For time that employees do not work, they will be paid up to two thirds (66%) of their agreed wage. 

 

How to Claim 

As mentioned, the scheme will commence on 1st November 2020. Employers can make a claim using the gov.uk online website from December 2020 and will be paid monthly. Claims can only be submitted according to the given pay period, once a payment has been processed to an employee, HMRC will be aware of the payment with a RTI return.  

HMRC will check claims. If a claim us found as to be fraudulent or incorrect information has been used, payments may be withheld or needed to be paid back. Employers must also agree for a short time working arrangement with their staff, this agreement must be made available to HMRC on request. 

 

Grant Coverage 

The grant does not cover Class 1 employer NICs or pension contribution, these payments will remain payable by the employer. For the hours not worked by the employee, a third of the hourly wage will be paid both by the employer and the government. The maximum amount that the government will contribute to is £697.92 per month. 

 

Get in touch 

We are still awaiting further information to be released regarding the new job support scheme. Contact us on 028 4175 2778 if you have any questions or want to discuss the next steps for your business.